PS Sing'oei: Kenya eyeing sustainable funding from China as Ruto begins State Visit

Foreign Affairs Principal Secretary Korir Sing'oei during an interview in Beijing, China on April 21, 2025/MFA

Kenya will be seeking to renegotiate how it secures funding from China for major infrastructure projects as President William Ruto embarks on a five-day state visit to Beijing.  

The government, Foreign Affairs Principal Secretary Korir Sing'oei said Monday, hopes to have a more sustainable financing model moving away from conventional loan arrangements.

According to Sing'oei, they hope to convince Chinese authorities to adopt alternatives such as public-private partnerships (PPPs), in light of rising interest rates, a volatile shilling, and mounting loan repayment costs.

“We shall be trying to persuade our colleagues to consider a different financial model that is outside the loan arrangement,” Sing’oei said. 

“That conversation is in progress, and it is a great deal to us.”

Speaking during an interview with the Star in Beijing ahead of the president’s arrival, the PS acknowledged that Kenya faces limitations in taking on new loans. 

He stressed the importance of exploring innovative financial solutions that reduce the debt burden on citizens.

One of the major projects under discussion is the extension of the Standard Gauge Railway (SGR) to Malaba.

Sing’oei noted that the project, once complete, is expected to generate enough revenue to repay its own costs.

To fund ongoing and future infrastructure projects, Kenya is also looking at ways to leverage existing instruments like the Railway Development Fund, possibly through securitisation to unlock additional financing.

Asked whether China requires a sovereign guarantee for future deals, Sing’oei indicated that Beijing is open to various funding models, provided they are sustainable and mutually beneficial.

“We are alive to the fiscal constraints we face, and so there is need to find innovative solutions to ensure we get the necessary resources to power our infrastructure ambitions,” he said.

Ruto is expected to arrive in Beijing Monday night, marking the beginning of a five-day tour focused on enhancing Kenya-China cooperation, particularly in infrastructure and trade.

Among the deals expected to be signed during the visit are the Nairobi Integrated Transport System—under negotiation for three years—and agreements related to Technical and Vocational Education and Training (TVETs), with an emphasis on human capital development and equipment support.

Other projects include grants for the construction of hospitals such as Londiani in Kericho County, as well as frameworks for new initiatives across multiple sectors.

While fiscal matters are expected to feature in the discussions, Sing’oei clarified that the president will not be directly involved in technical negotiations, which remain under the purview of the National Treasury and its Chinese counterparts.